Loan agreement of Issuer’s subsidiary

The Management Board of Echo Investment S.A. (hereinafter referred to as the "Issuer") hereby reports that on the 18th of March 2015 a subsidiary of the Issuer, ECHO – WEST GATE Spółka z ograniczoną odpowiedzialnością SKA  with its registered office in Kielce at 36 Solidarności Avenue, 25-323 Kielce, the company files of which are kept by the District Court in Kielce, 10th Commercial Department of the National Court Register, entered in the Register of Entrepreneurs of the National Court Register under the number KRS 0000393284 (hereinafter referred to as the "Borrower", the "Company") signed a loan agreement (hereinafter referred to as the "Agreement") with BNP PARIBAS BANK POLSKA SPÓŁKA AKCYJNA with its registered office in Warsaw (address: 3 Suwak Street, 02-676 Warszawa), the company files of which are kept by the District Court for the capital city of Warsaw in Warsaw, 13th Commercial Department of the National Court Register, entered in the Register of Entrepreneurs  of the National Court Register under the number KRS 0000006421 (hereinafter referred to as the "Lender", the "Bank"). The funds acquired on the basis of the Agreement will be used by the Borrower to finance the construction of the "WEST GATE" office building, which is under construction at 1 Na Ostatnim Groszu Street in Wrocław (hereinafter referred to as the "Project"). Subject to the conditions specified in the Agreement, Banks release the following:
1)  monetary resources constituting a construction loan of a maximum amount of EUR 19,000 thousand (nineteen million euro) in order to finance or refinance costs of the Project;
2)   monetary resources constituting a VAT loan of PLN 4,000 thousand (four million zloty) to be used to partially finance or refinance VAT loan due in connection with the construction of the Project;
3)    monetary resources constituting an investment loan of EUR 25,000 (twenty five million euro) to be used to repay the construction loan by way of conversion of loans and to refinance costs of the Project. The loans shall bear interest: the Construction Loan and the Investment Loan – based on the variable EURIBOR interest rate and the VAT loan – based on the variable WIBOR interest rate, plus the bank"s margin. The repayment dates of the loans are as follows:
1.   with reference to the construction loan  – the final repayment date is the 29th of January 2016;
2.   with reference to the VAT Loan – the 31st of December 2015;
3.  with reference to the investment loan – the final repayment date falls no later than 60 months from the Drawdown Date of the Investment Loan i.e. no later than the 29th of January 2021. The main collaterals provided by the Borrower in order to guarantee the repayment of the Loan and any amounts due to the Bank are:
1/ The highest priority Mortgage established by the Borrower on the Property to the benefit of the Bank, up to 150% of the involvement concerning the Investment Loan;
2/ The second highest priority Mortgage established by the Borrower on the Property to the benefit of the Lender, up to EUR 12,780 thousand in order to secure the repayment of obligations resulting from the termination of Hedging Documents which are part of the Agreement;
3/ Statements of Execution;
4/ Power of Attorney to Borrower"s Bank Accounts;
5/ Registered and Financial Pledge Agreements on shares, stocks, rights and accounts, based on which registered and financial pledges of the highest priority will be established to the benefit of the Lender as well as financial pledges on all the shares in the Borrowers share capital, up to 150% of the secured obligations, in the form and contents which are satisfactory to the Lender;
6/Transfer Agreement in order to secure receivables and rights of the Lender resulting from: all the Lease Agreements, Insurance Agreements, Construction Work Agreements, performance bonds concerning Construction Work Agreements, Project Management Agreement and other Project Documents;
7/ any other document signed by the Debtor, which establishes or is aimed at establishing a Collateral on all or part of its assets with reference to Debtors" liabilities resulting from Financing Documents. The Agreement has been considered significant on the basis of the Issuer"s equity criteria. Legal basis: §5 (1.3) and §9 of the Regulation of the Minister of Finance (Journal of Laws no. 33 item 259) of the 19th of February, 2009 concerning current and periodical information published by issuers of securities and terms of recognizing as equivalent information required by laws of a non-Member State.